Sustane’s materials separation facility will extract hard-to-recycle plastics that PK Clean technology will convert to diesel for multiple applications. But first, Sustane will pull organics from the stream to be made into biomass pellets to burn in conventional industrial boilers.

Sustainable Development Technology Canada (SDTC) said the funds will help Sustane Technologies build a new demonstration plant southeast of Halifax in Chester, N.S.

“Sustane’s first-of-its-kind technology converts waste into useful products like synthetic diesel and recycled metal and plastic, potentially eliminating the need for landfills,” Leah Lawrence, SDTC’s president and CEO, said in a statement.

She added that the company’s technology has worldwide applications—something that could lead to export opportunities down the road.